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Native American Incentive funds exhausted
Support needed to increase program
OKLAHOMA CITY (26Oct.04) - Money is running dry. Native American government contracting
businesses have been booming in recent years across Oklahoma and the Nation as a
result of the Native American Incentives Act and Department of Defense Indian Incentives
Program. Now the demand for funds from the program to aid the growth of contracting
has become greater than what is available.
The Act, enacted in 1974, authorizes the payment of a five percent incentive as
additional compensation to a prime contractor for a government contract. The incentive
amount is based upon the amount of the subcontract awarded to a Native American
subcontractor or supplier.
Even though any government agency can participate, none funded programs under the
Act until 1997. At that time, the Defense Department established the $8 million
a year budget for the Indian Incentive Program. The program has been growing in
use and the full allocation was used for the first time this year. The program used
$7.2 million in 2003 and as a result of the latest boom in Native American economic
development the demand for the allocated $8 million a year has already been met
for 2004. There is hope to have funds increased for 2005.
“The Native American Incentives Act is vital to Native American business and U.S.
small business growth, especially in Oklahoma,” said Oklahoma City Attorney
Phil G. Busey.
Busey, a Delaware and Cherokee who represents a number of tribes across Oklahoma
for legal matters, said there is a strong demand to increase funds for the program.
“Even though the $8 million is nominal compared to other program funds, the Act
has stimulated growth and jobs among Native American businesses and in rural areas,”
he said. Busey is currently taking the lead to gain support for the program.
He said the incentive triggers large prime contractors to seek small Native American
owned companies with quality services for subcontract dollars. “Though the incentive
is paid to the prime contractor the subcontract amount can be significant for the
minority company,” he said.
“With the growing participation of Native American businesses and the Department
of Defense funds having already been exhausted for this year creates a growing concern
of whether enough funds will be available for next year,” Busey said.
“This program is very important to all of Oklahoma,” he said. “The use of the capital
funds in Oklahoma creates jobs in Oklahoma. “The program has a strong impact on
rural areas and is an important economic development tool,” he said.
Recently, Busey has taken time to discuss issues with both the U.S. Senate Committee
for Indian Affairs and Senator Daniel Inouye's staff.
Senator Inouye of Hawaii was instrumental in obtaining the Defense Department appropriations
for the $8 million a year in 1997. According to Busey, Inouye has worked every year
to increase the appropriation but slowed down due to the funds never being fully
exhausted. "The picture has now changed,” Busey said. “A big reason the funds
have never been fully used until now is because of the shortage of Native American
government contractors and little information given about the program.”
Busey is working to secure support with the American
Indian Chamber of Commerce and companies such as Clark Construction, Inc. to request Senator Inouye to obtain
addition appropriations to increase the
annual allocation under the Defense Department
Indian Incentives Program.
Busey is also encouraging companies engaged in business as prime Defense Department
contractors, and others to support the additional appropriations. These prime contractors
actively use and benefit from the program funds. The program has been successful
in helping to solidify alliances between Department of Defense prime contractors
and Native American subcontractors.
“For such a small appropriation, the Indian Incentives Program has been very helpful
in promoting viable alliances in Indian Country, bringing additional contract revenue
and creating jobs among tribes and rural areas,” Busey said. “People need to realize
too, this program benefits everyone economically. Every dollar brought to Oklahoma
helps all Oklahomans."
In 2002, a Native American Company formed by Busey, Delaware Resource Group was
awarded a $33 million subcontract by Boeing at Tinker Air Force Base. The subcontract
allowed over 90 jobs to stay in Oklahoma. Few of the employees are Native American
but the company remains Native American owned.
“That is just an example of the strength of the incentive,” Busey said. Joe Temple,
president of the Delaware Resource Group, said one of the reasons the contract was
awarded to the Oklahoma company was a result of the Indian Incentive under the Defense
Department. “The incentive contributed to Boeing considering Delaware Resource
Group,” Temple said.
To help support the efforts to have more funds allocated to the program please call
(405) 721-7776.
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5721 NW 132nd Street
OKC, OK 73142
Ph: 405.721.7776
Fax: 405.721.7779 |
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